hope it rally today, page-22

kray: "Without shorting what would you do when something is overpriced? Shorting is just a tool in keeping those shares honest."

I don't see why anything needs to be done at all. If something is overvalued in your mind then don't buy it if you don't want to. I don't understand why you think you should have an automatic right to sell down the price of something you don't own just because you don't think the value is correct. Short selling is a creation of equity markets and doesn't exist for any other asset, product or service outside of equity markets. You can't short sell a car and you can't short sell a loaf of bread in the ordinary sense. It is a tool for market manipulation and benefits deep pocketed institutions.

I agree houses are too expensive. However, being allowed to short sell houses would be a recipe for carnage. I suppose some smart ass speculators might position themselves to make some money at the expense of the wider community causing market dislocation and unemployment. Do you think that would be good?

FMG appears to me to be having much bigger swings purely because of the shorting action.